Question 1

Which of the following was NOT a factor in the 2008 financial crisis?
A)Underpricing of risk
B)Fair value accounting
C)The housing market bubble
D)Failure of regulatory infrastructure

Accepted Answer

Fair value accounting was not a significant factor in the 2008 financial crisis. The other options - underpricing of risk, the housing market bubble, and failure of regulatory infrastructure - were all contributing factors.

Question 2

Countrywide grew rapidly in its pursuit of profits,but this
A)happened without consideration for the societal implications.
B)was accompanied by progressive corporate social responsibility standards,which were undone by the collapse in housing prices,leading to numerous foreclosures.
C)was accompanied the due diligence of investors exercising oversight.
D)was undone by fraudulent loan applications.

Accepted Answer

The sentence implies that Countrywide's pursuit of profits did not take into consideration the societal implications, suggesting a lack of social responsibility. This is supported by the use of the word "rapidly" which implies that the company was more focused on growth than on ethical considerations.

Question 3

Which of the following attempts to capture all of the impacts of the production process,at each step in the supply chain,and assign a quantitative value to each step?
A)Circular pricing
B)Environmental impact regulation
C)Market optimization
D)Lifecycle pricing

Accepted Answer

Lifecycle pricing attempts to capture all of the impacts of the production process, at each step in the supply chain, and assign a quantitative value to each step. It takes into account the environmental, social and economic impacts of a product throughout its entire life cycle, from raw material extraction to disposal. This helps companies to identify areas where they can reduce their environmental impact and make more sustainable business decisions. Circular pricing, market optimization and environmental impact regulation are not specific approaches to capturing all of the impacts of the production process.

Question 4

While ________ focuses on resource utilization and waste reduction,________ is an attempt to incorporate all the costs into the final price that is charged for a product.
A)the circular economy; lifecycle pricing
B)lifecycle pricing; the circular economy
C)the circular economy; externality marketing
D)externality marketing; lifecycle pricing

Accepted Answer

The circular economy focuses on making the most efficient use of resources and minimizing waste, while lifecycle pricing aims to include all costs associated with a product, from production to disposal, in its final price.

Question 5

Countrywide sought to promote homeownership widely.As the firm became more successful,however,particularly in the early 1990s,what happened?
A)External pressures to maintain that success mounted.
B)Changes in government rules caused Countrywide to fail.
C)Embezzlement was rampant.
D)Government regulation slowed the growth of homeownership.

Accepted Answer

As Countrywide became more successful, external pressures to maintain that success mounted, which likely influenced the company's actions and decisions moving forward.

Question 6

What does the market,if left to its own devices,tend toward?
A)Abusive practices
B)Inefficiency
C)Values-based businesses
D)The most efficient economic growth

Accepted Answer

The answer of What does the market,if left to its...

Question 7

Nike's 2004 Corporate Responsibility report
A)clearly listed the environmental and social impact of the production process for each of its products.
B)identified its complete list of suppliers worldwide.
C)disclosed vendors' violations of the firm's code of conduct.
D)discussed social impacts and the triple bottom line.

Accepted Answer

The answer of Nike's 2004 Corporate Responsibility report
A)clearly listed the...

Question 8

________ is the term for the societal costs associated with air pollution from diesel trucks that transport products from factories to stores.
A)Externalities
B)Internalities
C)Sustainability costs
D)Lifecycle costs

Accepted Answer

Externalities are the costs or benefits to individuals or society as a whole that are not reflected in the market price of a good or service. The air pollution caused by diesel trucks transporting products from factories to stores is an example of an externality as it imposes costs on society in the form of health problems, environmental damage, and increased healthcare costs. These costs are not considered in the price of the products being transported and are thus external to the market.

Question 9

The concept of ________ is defined by instituting a system of incentives in which rewards are privatized and risks are socialized.
A)financial privatization
B)moral hazard
C)invisible hand
D)global capitalism

Accepted Answer

The concept of moral hazard is defined by instituting a system of incentives in which rewards are privatized and risks are socialized. This means that individuals or institutions are incentivized to take risks because they know that they will benefit from the potential rewards, but will not bear the full cost of the risks if things go wrong. This can lead to reckless behavior and can have negative consequences for society as a whole.

Question 10

ISO (International Organization for Standardization)26000 was developed as
A)a mandatory corporate social responsibility standard applied in Europe.
B)a guide.
C)a mandatory standard in Europe and a voluntary standard for the rest of the world.
D)a corporate social responsibility standard that only applies in Scandinavian countries.

Accepted Answer

ISO 26000 is a voluntary guide for corporate social responsibility and not a mandatory standard in any region. It is applicable globally, not restricted to any particular country or region.

Question 11

In general,dichotomous measures of corporate social responsibliity are unhelpful to those who advocate for CSR because
A)such measures reflect the biases of the measuring organization.
B)CSR is more complicated than a simple yes or no.
C)all firms contain good and bad.
D)all of the above.

Accepted Answer

Dichotomous measures of CSR are limited in their ability to measure the complexity of a company's social responsibility. They often reflect biases and oversimplify the issue, as all companies contain both positive and negative aspects of CSR. Using a more nuanced and comprehensive approach to measuring CSR is necessary to accurately assess a company's social impact.

Question 12

Which of the following may be considered an example of corporate social responsibliity?
A)Sending out employees in matching T-shirts to paint a wall for 5 hours a year
B)Establishing a recycling program at work
C)Improving supply chain conditions
D)All of these examples may be considered CSR,depending on who is defining it.

Accepted Answer

Corporate social responsibility (CSR) can have different definitions and interpretations depending on who is defining it. Therefore, all of these examples may be considered CSR, as they involve actions taken by a company to contribute positively to society and the environment, beyond their profit-making activities. Sending out employees to paint a wall, establishing a recycling program, and improving supply chain conditions are all examples of CSR practices that can enhance the reputation and credibility of a company, as well as its relationship with stakeholders.

Question 13

According to the textbook,definitions of corporate social responsibliity are currently
A)highly idiosyncratic.
B)coalescing around the concept of strategic CSR.
C)less confusing than they were 10 years ago.
D)differ more across countries and cultures than within countries and cultures.

Accepted Answer

Definitions of corporate social responsibility are currently highly idiosyncratic.

Question 14

Timberland's 2006 Our Footprint labeling scheme
A)avoided mentioning the social impacts of its production process.
B)avoided mentioning environmental impacts.
C)discussed social impacts and the triple bottom line.
D)clearly listed the environmental and social impacts of the production process for each of its products.

Accepted Answer

Timberland's 2006 Our Footprint labeling scheme was designed to transparently communicate both the environmental and social impacts of their products, aligning with the concept of the triple bottom line.

Question 15

Externalities are costs that firms
A)push onto others.
B)account for when they purchase materials from third parties.
C)add to the final price of a product.
D)typically account for in the wholesale rather than the retail price of a product.

Accepted Answer

Externalities are costs that are not borne by the firm producing a good or service but are instead passed on to society at large or to third parties. Therefore, the correct answer is A - push onto others.

Question 16

The 18th-century economist,Adam Smith,believed in free markets but thought that ________ was required to make markets free.
A)the "invisible hand"
B)the sovereign state
C)regulation of the market price
D)regulation of the natural price

Accepted Answer

Adam Smith believed that a sovereign state was required to make markets free. He argued that the role of the government should be limited to establishing the rule of law, protecting property rights, and ensuring national defense. This would create a stable and predictable environment for free markets to operate.

Question 17

According to the textbook,ecolabels are
A)primarily designed as marketing tools.
B)designed to measure environmental impact.
C)becoming consistent across all industries.
D)very useful to help consumers clearly understand the products they buy.

Accepted Answer

The textbook states that ecolabels are designed to measure environmental impact, making choice B the correct answer. While ecolabels can be used as marketing tools, the primary purpose is to provide information about the environmental impact of the product. The consistency of ecolabels across industries varies, so choice C is not accurate. Ecolabels can be useful to consumers, but that is not their primary purpose, making choice D incorrect.

Question 18

According to the textbook,which of the following seems to be the universal standard in corporate social responsibliity audits?
A)Ceres Principles
B)Global Impact Investing Rating System (GIIRS)
C)Global Reporting Initiative (GRI)
D)Sustainability Accounting Standards Board (SASB)

Accepted Answer

The Global Reporting Initiative (GRI) is considered the universal standard in corporate social responsibility audits, providing guidelines for reporting on economic, environmental, and social performance. The other options listed are also important frameworks for sustainability and responsible business practices, but they are not considered the universal standard for CSR audits.

Question 19

Lifecycle pricing involves the incorporation of ________ in the final price of a product.
A)externalities
B)indirect costs
C)internalities
D)circular pricing

Accepted Answer

Lifecycle pricing involves the incorporation of externalities in the final price of a product. Externalities are costs or benefits that are not directly incurred or received by the producer or consumer of a product, but rather by third parties.

Question 20

According to the textbook,how to measure corporate social responsibliity is
A)becoming widely understood with the implementation of ISO 26000.
B)becoming widely understood as more business schools teach principles of CSR in required courses.
C)one of the most pressing and contentious areas of the CSR debate today.
D)a non-issue when taking the perspective of strategic CSR.

Accepted Answer

Measuring corporate social responsibility (CSR) remains a pressing and contentious issue because there is no universally accepted standard or method for evaluating CSR efforts, making it a topic of ongoing debate and discussion.

Quiz 9: Accountability

Which of the following was NOT a factor in the 2008 financial crisis?

Countrywide grew rapidly in its pursuit of profits,but this

Which of the following attempts to capture all of the impacts of the production process,at each step in the supply chain,and assign a quantitative value to each step?

While focuses on resource utilization and waste reduction, is an attempt to incorporate all the costs into the final price that is charged for a product.

Countrywide sought to promote homeownership widely.As the firm became more successful,however,particularly in the early 1990s,what happened?

What does the market,if left to its own devices,tend toward?

Nike's 2004 Corporate Responsibility report

________ is the term for the societal costs associated with air pollution from diesel trucks that transport products from factories to stores.

The concept of ________ is defined by instituting a system of incentives in which rewards are privatized and risks are socialized.

ISO (International Organization for Standardization) 26000 was developed as

In general,dichotomous measures of corporate social responsibliity are unhelpful to those who advocate for CSR because

Which of the following may be considered an example of corporate social responsibliity?

According to the textbook,definitions of corporate social responsibliity are currently

Timberland's 2006 Our Footprint labeling scheme

Externalities are costs that firms

The 18th-century economist,Adam Smith,believed in free markets but thought that ________ was required to make markets free.

According to the textbook,ecolabels are

According to the textbook,which of the following seems to be the universal standard in corporate social responsibliity audits?

Lifecycle pricing involves the incorporation of ________ in the final price of a product.

According to the textbook,how to measure corporate social responsibliity is